IR35 – WHERE DO YOU STAND?
2020 Are you ready?
Private sector needs to operate new IR35 rules for contractors from April 2020
The Chancellor has confirmed that with effect from 6 April 2020 businesses in the private sector which engage contractors – individuals who supply their services via their own company or partnership (“Intermediary”) – will be responsible for determining whether the IR35 rules apply. If the business considers that IR35 applies, the person paying the Intermediary will be responsible for operating PAYE and NICs on the fees it pays to the Intermediary.
IR35 is a piece of tax legislation targeting tax avoidance by contractors operating via a limited company, who should be classed as and, most importantly, taxed like a permanent employee of their end client. Basically, if you are a limited company contractor, working very much like a permanent employee of your client as opposed to having more of a business-to-business relationship, then the Revenue sees it that you should be paying just as many taxes.
HMRC has stated in the October 2018 budget, that To increase compliance with existing off-payroll working rules (IR35) in the private sector, Budget 2018 confirms that businesses will become responsible for assessing an individual’s employment status and determining whether the rules apply.
Do you need an IR35 Review?
We strongly urge you to at least have a contractual assessment as an indication of what needs to be done on a basic level. We can put you in touch with one of our IR35 specialists.
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